i. Review previous year's working papers and discuss with the management any
significant changes from the previous year.
ii. Discuss stock taking arrangement with the management
iii. Familiarize himself with the nature and volume of stocks especially with high value
items.
iv. Consider the location of the stock (e.g. at branches) and the problems thus 'caused
for the client and the auditor.
v. Considers likely points of difficulty eg. Cut off.
vi. Considers internal audit involvement and if reliance can be placed upon it.
vii. Arranging to obtain from third party if any stock is held by them
viii. Review surrounding systems of internal control to identify areas of potential
difficulty
ix. Plan usage of audit staff so as to cover all required location.
Kavungya answered the question on May 14, 2019 at 13:08
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